French actor Gérard Depardieu, who received a Russian passport at a January 6 dinner with Russian President Vladimir Putin, has become a hot topic in international media. The media believed that he was trying to avoid a new tax policy on the super-rich adopted by French authorities.
But how could this tax on the rich have made the French celebrity leave his country? And how has France become the "purgatory" for the rich?
The high social welfare in France is based on its high taxes. The French Finance Act 2012 approved by the parliament stated that the tax rate for the highest earners will rise to 41 percent. Together with other kinds of tax, high-income earners have to pay a tax rate as high as 50 percent, which means half of their revenue has to be handed over to the country.
French President François Hollande even promised to tax the rich 75 percent of their income during his election campaign, scaring the country's super-rich.
Although rich people have shown discontent toward such a high tax system, they can do nothing but bear it. This is partly due to the country's religious and historical roots. Christianity is the foundation of European civilization, and poverty has been promoted as a virtue and a boarding pass to heaven.
It can also be attributed to social movements. Some ruling parties in Europe which advocate social democracy have called for social welfare to be raised and the interests of vulnerable groups to be protected. The power of workers' unions cannot be ignored either.
For China, France's lesson is one worth learning. First, China should try every means possible to get rich Chinese to stay in the country. That poverty is no sin, as advocated by France, is absolutely right, but being rich is no sin either.
Depardieu claimed that his 2012 tax bill, 85 percent of his income, was fully paid, amounting to as high as 100 million euros ($133.7 million). If his fortune can stay in France, it will play some role in promoting the French economy, which is currently stuck in the mud.
Meanwhile, China should make its rich citizens take on social responsibilities. Chinese leaders have already faced the tough task brought about by constant scandals involving the children of rich people and their ethical problems.
China should also appropriately raise the tax rate for the rich. At the same time, the rich should be granted the social status that they deserve. If the rich feel secure in the country and their value can be recognized, some of them will come back.
The author is vice chairman of Paris-based l'Association des Juristes et Economistes Chinois en France (China-France Association of Lawyers and Economists). opinion@globaltimes.com.cn